The Cheapest Dividend Contenders with Lowest PEG Ratios

Dividend Contenders are stocks that have raised their distributions for at least 10 years but not more than 24 years. They have a long history of dividend payments and have created a lot of trust to shareholders. Out there are 146 stocks with such an impressive development, but not all of them are still growing and expensive in terms of growth. I screened all Dividend Contenders by companies with a low price-earnings to growth ratio (PEG), stocks that have a ratio of less than one. Twelve stocks fulfilled my criteria of which one has a yield above five percent. Ten have a buy or better recommendation.

Here are my favorite stocks:

1. Norfolk Southern (NYSE:NSC) has a market capitalization of $23.97 billion. The company employs 28,559 people, generates revenues of $11,172.00 million and has a net income of $1,916.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,075.00 million. Because of these figures, the EBITDA margin is 36.48 percent (operating margin 28.76 percent and the net profit margin finally 17.15 percent).

The total debt representing 26.42 percent of the company’s assets and the total debt in relation to the equity amounts to 76.08 percent. Due to the financial situation, a return on equity of 18.53 percent was realized. Twelve trailing months earnings per share reached a value of $5.44. Last fiscal year, the company paid $1.66 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 13.34, Price/Sales 2.17 and Price/Book ratio 2.40. Dividend Yield: 2.61 percent. The beta ratio is 1.09.

2. Bunge Limited (NYSE:BG) has a market capitalization of $8.69 billion. The company employs 32,000 people, generates revenues of $45,707.00 million and has a net income of $2,361.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,720.00 million. Because of these figures, the EBITDA margin is 8.14 percent (operating margin 6.67 percent and the net profit margin finally 5.17 percent).

The total debt representing 18.77 percent of the company’s assets and the total debt in relation to the equity amounts to 39.94 percent. Due to the financial situation, a return on equity of 23.49 percent was realized. Twelve trailing months earnings per share reached a value of $6.30. Last fiscal year, the company paid $0.90 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 9.48, Price/Sales 0.19 and Price/Book ratio 0.74. Dividend Yield: 1.72 percent. The beta ratio is 1.13.

3. Caterpillar (NYSE:CAT) has a market capitalization of $73.74 billion. The company employs 125,099 people, generates revenues of $60,138.00 million and has a net income of $5,005.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,680.00 million. Because of these figures, the EBITDA margin is 16.10 percent (operating margin 11.89 percent and the net profit margin finally 8.32 percent).

The total debt representing 42.47 percent of the company’s assets and the total debt in relation to the equity amounts to 268.51 percent. Due to the financial situation, a return on equity of 41.57 percent was realized. Twelve trailing months earnings per share reached a value of $7.40. Last fiscal year, the company paid $1.82 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 15.41, Price/Sales 1.22 and Price/Book ratio 5.71. Dividend Yield: 1.62 percent. The beta ratio is 1.88.

Take a closer look at the full table of cheap Dividend Contenders with lowest PEG ratio. The average price to earnings ratio (P/E ratio) amounts to 18.35 and forward P/E ratio is 13.26. The dividend yield has a value of 1.20 percent. Price to book ratio is 2.54 and price to sales ratio 1.78. The operating margin amounts to 13.88 percent.

Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC.
Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.